Strategic Crisis Leadership

6/17/2009 by Jack Burnett

Bruce T. Blythe, CEO, Crisis Management International, Inc. contributed the following about Strategic Crisis Leadership:

You are a leader of a small, mid-market company or a large enterprise: What would you do in the three situations briefly outlined below?

Crisis Leadership Moment #1  Imagine that it finally hit! The avian flu has just been confirmed to be contagious. One of your traveling employees has just been diagnosed with this dreaded disease after returning home. Your workforce is fearful that they might have been exposed and most are not personally prepared at home for an outbreak.  But, you need them to carry out the company's business continuity plan. Employees in mass want to take time off. What do you do?

Crisis Leadership Moment #2  You learn that one of your facilities has been emitting low-level toxic substances for an undetermined amount of time. It is the company's fault due to a prior decision to delay replacement of a faulty system in one of your facilities. But, it is quickly remedied.  Possibly, employees, visitors and others have been exposed to a small degree. Most likely, the exposure was minimal with no harm.  Unfortunately, a similar situation occurred at the same facility last year. You reported it to the authorities and the media, in learning about it, exaggerated the story, blaming the company for putting people at risk.  If knowledge of the present toxic emission were unveiled publicly it would likely cause serious reputation and legal damage to your organization, now that it has happened again. But it would be worse if discovered later that you tried to cover it up. Possibly, your position within the company is on the line, as well. Only you and a couple of trusted subordinates know about the emission now. Do you proactively go public and risk the feared personal, reputation and legal damage or try to resolve the situation quietly with (hopefully) no public harm done?  Two bombs hit your facilities simultaneously in different locations with a note from an activist group taking credit. Do you close all your facilities throughout the enterprise as a safety precaution? If so, for how long?  If not, what are alternative responses?

Crisis Leadership Moment #3 Two bombs hit your facilities simultaneously in different locations with a note from an activist group taking credit. Do you close all your facilities throughout the enterprise as a safety precaution? If so, for how long?  If not, what are alternative responses?

Time's up. Tell me. What are you going to do?

Experience and empirical research all seem to agree that it is best to prepare. Crisis planning, training, tabletop exercises and simulations-they all play an important part in helping you as facilities managers prepare for an unexpected crisis. But, then it hits for real and all bets are off.  With no prior notice, you must make on-the-spot crisis leadership decisions and implement rapid-fire responses.  Your people are stressed-out and deadlines are time compressed. Information is inadequate and the high-consequences of your responses could determine if people will be harmed, careers ruined and your company seriously damaged.  Quick! What's the first thing you'd do if someone slammed his car through the front plate glass doors of one of your facilities?  What if it happened during work hours and people were killed? Have you made some decisions? Great, now unmake them.  Because you just found out that he was a disgruntled employee. That changes things.  What do you do now? Have you decided?  Good. Now undecide. Because you just watched a local TV anchor report that your company knew the employee was an alcoholic and he had been making threats.  Most crisis preparedness addresses tactical and logistical issues, e.g., notifications, evacuations, emergency response, etc.

Unfortunately, there is very little preparedness for managers who must make high-quality, defining decisions in the midst of chaos. Yet, leaders at all levels of an organization in crisis must make best-judgment crisis response decisions in ambiguous, high-consequence situations.  Purposeful crisis leadership preparedness is a vital missing ingredient in most corporations. Commonly, the belief is that managers like you, "are intelligent, experienced leaders and they are paid to make tough decisions during crises." This attitude is analogous to a professional sports team that believes they have such highly talented athletes there is no need to develop a playbook and use any plays during the game.

No learned crisis leadership skill will overcome the lack of character, ethics or integrity.

What do you need to be? Caring.  Demonstration of caring is more important that all other leadership traits combined, according to research by the Center for Risk Communications. If you come across as uncaring, people will become outraged. Caring during crisis response is not a feeling. Caring is a set of corporate and personal behaviors that elicit the perception in impacted stakeholders that you and your company truly care.  What do you need to know? As a leader, you must have a vision for crisis resolution. Without a clear and compelling vision for response and recovery, you will not be able to adequately lead your people during times of crisis.  And do? The single most important action is two-way communication. Simply put, you will never be any better at responding to crises than your communication.  That involves how well you listen to obtain the facts and how well you speak openly to impacted stakeholders.  This is one prescription that we impart in leaders who take the time to purposefully prepare for their responsibilities as Strategic Crisis Leaders. It can work for you, too. 

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